The 'Carry Trade' a Worry for the Euro

The euro could become the currency market's whipping boy in the coming months if investors dump it for currencies linked to higher-yielding assets in emerging markets and elsewhere.

In the past, investors often bought assets in Australian dollars and New Zealand dollars as part of a so-called "carry trade" to capitalize on higher interest rates offered on bonds there. And while many may continue to do so, others are looking at smaller, less-liquid markets like the Hungarian forint, the Polish zloty and the South...